Australia will allocate up to USD 70.5 million to 20 research and development projects to move towards a new reduction in the costs of large-scale solar energy , in the largest single investment made by the Australian Renewable Energy Agency (ARENA) in photovoltaic R&D.
The portfolio will target various components that determine the final cost of projects: efficiency, price and stability of cells and modules, balance of systems, construction, operation and maintenance (O&M) , as well as innovations aimed at increasing the performance of power plants and reducing the levelized cost of electricity (LCOE).
The disbursement is part of Australia's strategy to achieve ultra-low-cost solar and bring the installation cost down to 30 Australian cents per watt by 2030 .
“This portfolio brings together a combination of near-term upgrades and innovative technologies that have the potential to reduce costs, improve performance and accelerate the deployment of solar energy both in Australia and around the world,” said Chris Faris , interim chief executive of ARENA.
The scale of the stakes increased during the selection process itself. ARENA had initially allocated 60 million Australian dollars to the round, but decided to increase the available resources given the quality of the proposals received.
The funding finally reaches up to 105.6 million Australian dollars , equivalent to approximately USD 70.5 million , and will allow for a broader portfolio to be supported than originally planned.
The goal is not simply to develop cheaper or more efficient modules. The agency aims to address the overall cost of a photovoltaic plant , including those components that become more significant as the price of panels decreases.
“ Achieving ultra-low-cost solar energy requires innovation across the entire value chain ,” Faris said.
The 20 projects were organized into two main lines of work and six areas of focus . The first is concentrated on cells and modules and aims to increase their efficiency, reduce costs, and improve their stability.
The second focuses on system balance and O&M , with initiatives to reduce the cost of implementing the components surrounding the module, decrease expenses during the life of the plants and develop solutions capable of improving performance and reducing the LCOE.
This last dimension is particularly relevant to ARENA's objective. Achieving solar installations at 30 Australian cents per watt will require cost reductions not only in photovoltaic technology but also in the design, engineering, construction, and subsequent operation of the assets.
Australia seeks to transfer its solar innovation to the next generation of projects
The new round also seeks to reinforce the role that Australia has historically played in photovoltaic research and to translate those developments into commercial applications capable of accelerating deployment.
“Australia has played a leading role in the development of solar technology, and these projects will help ensure that we continue to strengthen that position,” Faris said.
The program thus combines technologies with the potential for short-term impact with others of a more disruptive nature. The intention is that the improvements will translate into higher production per installation, lower capital and O&M costs, and ultimately, cheaper solar electricity .